SA tax return - services company section?

[jumbojake]

I'm just doing my first SA return as an IT contractor.... I run a limited company (started in May 2010) and do the usual salary + dividend.

I believe I fall outside IR35.

So ... do I have to fill in the section detailing 'services companies' ? (seems like a question loaded for another purpose)

If I do ... is this in addition to already declaring the salary & dividends in the earlier sections? ( i don't want to declare dividends twice unless you're meant to!!)

[Craig@Clarity]

For a director of personal service company (PSC), if they have ticked the box on the P11D to say they are part of one (PSC), then the gross amount they receive in terms of salary and dividends should go on the personal tax return too for consistency.

Hope this helps

[northernladuk]

How confident are you it is 100% correct and are happy without an accountant?

[jumbojake]

I've no idea what a 'PCS' is (kind of the first part of my question) ... and I don't have a p11d form this year (told I don't need one).

As for how accurate... not sure what you mean, my figues (personal or my companies (my company)?

[prozak]

I'm just doing my first SA return as an IT contractor.... I run a limited company (started in May 2010) and do the usual salary + dividend.

I believe I fall outside IR35.

So ... do I have to fill in the section detailing 'services companies' ? (seems like a question loaded for another purpose)

If I do ... is this in addition to already declaring the salary & dividends in the earlier sections? ( i don't want to declare dividends twice unless you're meant to!!)

You can be a service company without being inside IR35. I believe I ticked that box.

Maybe I made a mistake?

[malvolio]

First one - Yes, I work through a PSC (whatever one of them is)

Second one - No, I have applied the intermediatries legislation and do not believe it applies.

Simples...

[Clare@InTouch]

You can be a service company without being inside IR35. I believe I ticked that box.

Maybe I made a mistake?

Nope, you're fine. A service company would include plumbers, carpenters, IT consultants and anyone who personally provides services. It's still too wide ranging a question to really be used as an IR35 investigation target mechanism in my view.

HMRC state:

Service companies
Complete this box if you provided your services through a service company. You provided your services through a service company if:

you performed services (intellectual, manual or a mixture of the two) for a client (or clients); and
the services were provided under a contract between the client(s) and a company of which you were, at any time during the tax year, a shareholder; and
the company’s income was, at any time during the tax year, derived wholly or mainly (that is, more than half of it) from services performed by the shareholders personally

Do not complete this box if all the income you derived from the company was employment income.

[jumbojake]

You can be a service company without being inside IR35. I believe I ticked that box.

what 'box' did you tick ... is that on the SA form, or something else?

I'm getting the impression a IT contractor will always fall into the hmrc definition of 'service company' ... so I guess my main quesition to anyone who has completed their own SA before is

... do I declare my dividends in BOTH dividend section AND services comany section, or just in service company??

[TheFaQQer]

what 'box' did you tick ... is that on the SA form, or something else?

I'm getting the impression a IT contractor will always fall into the hmrc definition of 'service company' ... so I guess my main quesition to anyone who has completed their own SA before is

... do I declare my dividends in BOTH dividend section AND services comany section, or just in service company??

My accountant put it in the dividends section, nothing in the service company section.

[jumbojake]

ok ... making some progress on this one.... I've found the 'ticked' box on the P35 (in the mycompany bundle) ... this clearly states mycompany is a services company. So, I guess I have no choice but to declare it on the SA also.

So, Please can anyone offer their advice to my (perhaps) daft question.

If I declare my income from my company (salary & dividend) int he 'services company' section, do I also declare them in the salary and dividend sections?